A nightclub in Wynwood has used the same three doormen for two years. They are on payroll, they know the regulars, and the owner trusts them. After a busy holiday weekend that ended with a fight in the line outside, the landlord asks for proof of security coverage, and a friend suggests switching to a licensed security company instead. The owner wants to know which approach actually protects the business better.
Both approaches can work. They create different exposures, put different paperwork on the owner’s desk, and need different things from the insurance program.
The Assault and Battery Exposure Exists Either Way
Whoever is working the door, the bar is the business where the incident happens, and claims alleging assault, battery or negligent security will name the bar. Patrons injured by staff, patrons injured by other patrons, and people hurt in the line or parking lot all produce claims, and the allegations usually include that security was inadequate or too aggressive.
That makes the assault and battery terms on the bar’s general liability and liquor liability policies the most important coverage question, regardless of who employs the security staff. Some policies exclude assault and battery entirely, some cover it with a lower sublimit, and some exclude claims involving the business’s own employees or contractors. Our article on assault and battery coverage for Florida bars and nightclubs explains what to look for.
When Bouncers Are Your Employees
Employing your own security staff gives you direct control over who is hired, how they are trained and how they behave. It also means the bar carries every employment exposure that comes with them. Doormen are injured at a higher rate than most restaurant staff, and Florida generally requires workers’ compensation once a non-construction business has four or more employees. Security work should be classified correctly on the workers’ comp policy, because misclassified payroll shows up at audit.
Employment practices exposure also increases. Claims of discrimination at the door, harassment, wrongful termination after an incident and retaliation are common in nightlife. Employment practices liability coverage, and whether it includes third-party claims from customers, should be reviewed.
Licensing is the other question. Florida’s private security law, chapter 493, generally requires a Class D license to perform security services. It exempts unarmed individuals who are employed directly by a business to work only on that employer’s premises. In-house staff who are armed, or who work for more than one business, fall outside that exemption. Owners should confirm their own situation, but unarmed bouncers on the bar’s payroll generally fit the in-house exemption.
When Security Is Contracted
A licensed security company brings its own officers, its own workers’ compensation and its own liability insurance. That can shift a meaningful share of the injury and employment exposure away from the bar, but only if the contract and the certificate actually do it.
The bar should require a certificate showing the security company’s general liability, including assault and battery coverage that is not excluded, at limits at least as high as the bar’s own requirements. The bar should be named as an additional insured, ideally on a primary and noncontributory basis, and the contract should include a hold harmless and indemnity agreement in the bar’s favor and a waiver of subrogation. Our guide on how to verify a security guard company is properly insured walks through what to check, and assault and battery insurance for security guards explains why that coverage on the contractor’s policy matters.
Contracting does not remove the bar from the claim. It gives the bar a second policy to respond and a party to share responsibility. If the security company’s coverage excludes assault and battery, or its limits are low, the protection is mostly on paper.
Training, Reports and Cameras
Whichever approach a bar chooses, the practices that defend claims are the same. Security staff should be trained in de-escalation and in Florida’s limits on use of force, with that training documented. Every incident should produce a written report the same night, including witnesses and whether police or medical help was called. Camera coverage of the door, the line, the bar and the parking area, with footage kept long enough to answer a claim, often decides how a case goes.
How Underwriters See It
Carriers writing nightlife ask how many security staff work on peak nights, whether they are employees or contractors, how they are trained, whether anyone is armed, and how incidents are documented. A clear, consistent security plan helps a bar qualify with better markets and keep its assault and battery coverage.
Worth Confirming With Your Agent
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Whether your liability policies cover, sublimit or exclude assault and battery
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Whether in-house security staff fit Florida’s licensing exemption
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How security payroll is classified on your workers’ compensation policy
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Whether your EPLI covers claims from customers as well as employees
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What insurance, limits and endorsements you require from a security contractor
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How incident reports and camera footage are kept
This article is general information and is not legal advice.
Talk to Prestige Insurance Group
Prestige Insurance Group insures bars, nightclubs and the security companies that work their doors, so we see these arrangements from both sides. If you are weighing in-house staff against a contractor, we can review your coverage and contracts and show you where the gaps are.
Call the office nearest you. Se habla español.
Orlando: 407-993-2331
Miami: 305-969-8776
Stuart: 772-247-3788
Prestige Insurance Group, License L057894
